Several brokerages remain positive on Tata Consultancy Services (TCS) following its Q2FY26 results, citing strong deal momentum, AI-led expansion, and healthy margin trends. Firms such as Avendus, Goldman Sachs, CLSA, and Nuvama Institutional Equities retained or upgraded their bullish stance, with target prices ranging from ₹3,300 to ₹3,700 per share.
At the time of reporting, TCS shares traded at ₹3,060.20.
Avendus upgraded TCS to a Buy rating with a target of ₹3,700, the most optimistic among brokerages. It highlighted robust deal-win momentum, with $9.4 billion in total contract value (TCV) in Q1 and $10 billion in Q2, which underpin confidence in a revenue recovery during H2FY26 and FY27. The brokerage expects the company’s vendor consolidation deals and AI data centre strategy to be key growth drivers while maintaining its FY26–FY27 margin and revenue estimates.
Goldman Sachs reiterated its Buy call with a target of ₹3,300, noting steady constant-currency revenue growth and a marginal improvement in EBIT year-on-year. The brokerage pointed to TCS’s foray into the data centre business, where it plans to build 1 GW of capacity over five to seven years, equivalent to about 15–20% of India’s total capacity. It also observed that the company is stepping up acquisitions, which historically it had stayed away from, viewing this as a positive for long-term growth.
CLSA maintained an Outperform rating with a target price of ₹3,559, stating that TCS beat expectations across revenue, margin, and order bookings in Q2. The brokerage said the company expects H2FY26 demand to be stronger than H1FY26, and is taking proactive measures to restructure its workforce to become more AI-ready. CLSA added that such initiatives position TCS well for the next phase of technology transformation.
Nuvama Institutional Equities also remained positive with a Buy call, though it trimmed its target to ₹3,650. The brokerage said Q2 revenue growth of 0.8% QoQ in constant currency exceeded its estimates and called TCS’s AI data centre investment a strategic shift that takes the company to an “interesting crossroads”. It revised FY26–FY27 EPS estimates down by 2% on slightly lower growth assumptions but reaffirmed its long-term bullish view.
CMP: ₹3,060.20
Target Range (Bullish Brokerages): ₹3,300 – ₹3,700
Disclaimer: This article is based on brokerage research reports. It is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial experts before making investment decisions.